Select Sands Corp. announced operational and financial results for first quarter 2019. First quarter highlights include:
• Sold 39,982 tons of frac and industrial sand during first quarter 2019 as compared to 24,897 tons in fourth quarter 2018, an increase of 15,082 tons.
• Generated revenue of $1.6 million and a gross loss of $0.1 million in first quarter 2019, versus $0.9 million of revenue and a gross loss of $0.5 million in the preceding quarter.
• Reported a first quarter 2019 net loss of $0.8 million, or $0.01 per basic and diluted share, as compared to a net loss of $2.5 million, or $0.03 per basic and diluted share, in fourth quarter 2018.
Zig Vitols, president and chief executive officer, commented, “We were pleased to show improved financial results for the first quarter as compared to the fourth quarter of 2018. During the first quarter, we saw increased customer demand, although we expect sales volumes and pricing will remain under pressure at least for the near-term as the market continues to recover from an industry-wide retraction that began in the third quarter of last year. Contributing to this backdrop was the move by E&Ps in the southern U.S. oil producing basins to use a much higher percentage of local brown sand being produced in the Texas basins instead of the high quality Northern White sand that we produce. Considering the severe flooding experienced in the region, we are pleased to report that the company’s plants were not appreciably affected. We will remain laser-focused on controlling costs and preserving working capital as the frac sand market gradually improves over the remainder of 2019. Supporting our view is the returning demand for Northern White as E&Ps continue to more fully appreciate the superior performance characteristics provided by Northern White as it relates to optimizing the economic ultimate recovery of their well inventory.”